Type of transactions

EUR/HKD parity: liquidity schedules

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Monetary policy

The Hong Kong Monetary Authority (HKMA) is the institution responsible for maintaining the monetary stability and integrity of Hong Kong's banking and financial system.

Price setting method: the exchange rate is defined as fixed against the USD. Since 2005, the HKMA maintains the USD/HKD parity in a range 7.75/7.85. It intervenes punctually in the foreign exchange market when the spot price is too close to the fluctuation limits referred to in the previous sentence.

Features and highlights

Although now an integral part of China, Hong Kong enjoys a large degree of autonomy, which is particularly reflected in financial and monetary terms.

HKD is a very liquid currency, and one of the only ones in Asia that is fully deliverable and transferable.

Regulations

There are no special restrictions on the purchase and sale of HKD.

Expert opinion

Due to the indexation of the HKD to the USD, the evolution of the EUR/HKD is perfectly correlated with that of the EUR/USD.

Payments in HKD to Hong Kong

The IBAN format is not mandatory in Hong Kong. Payment instructions must contain: